KDP’s Biggest Update: What It Means for You
Amazon’s KDP platform is the foundation for thousands of indie authors around the world — and let’s be honest, it might be the greatest thing for authors since sliced bread. I remember being 15 years old and dreaming of publishing my own book, yet getting terrified at the process of publishing traditionally. KDP opens opportunities for indie authors to publish their books and get noticed more easily by traditional publishing houses when they do really well. It’s truly a great tool.
That being said, in June 2025, Amazon announced its most significant change in years: a shift in royalty rates for print books. For indie authors like ourselves, this update brings both challenges and opportunities. Here’s the breakdown:
The Update: Lower Royalties on Lower-Priced Print Books
Beginning June 10, 2025, Amazon reduced royalties on paperbacks and hardcover titles priced at or below certain thresholds. In the U.S., that threshold happens to fall at $9.98, meaning books priced at or below that point will now earn 50% royalties instead of the former 60%. And if you live elsewhere, here’s how that looks for you:
UK Marketplace
• £7.98 or lower → 50% royalty
• £7.99 or higher → 60% royalty
Canada Marketplace
• C$13.98 or lower → 50% royalty
• C$13.99 or higher → 60% royalty
The good news? E-books are not affected, so this especially won’t impact you when your readers are reading the e-book and buying a physical copy as a trophy. You still get two book sales. Congratulations.
The Silver Lining: Reduced Printing Costs
To offset the royalty changes, Amazon also slightly reduced their printing costs in certain categories. For example, U.S. standard color paperbacks will see the per-page cost lowered from $0.0270 to $0.0255. I know what you’re thinking — does that even count? To you, maybe not. But for authors with big sales goals, it might really help.
These savings don’t counterbalance the royalty cut, but consider them to be like a participation award. You still lost, but here’s a pat on the back and something shiny to take with you.
Why This Matters
This shift will change how you need to think about your pricing and profitability. A $9.99 paperback now earns more than a $9.98 paperback, simply because of the threshold. You’ll need to decide whether to raise your prices to hit the royalty margin, or keep the prices the same and accept slimmer profits.
Earnings Examples: $9.98 vs. $9.99
To show just how much of a difference one cent can make, let’s look at a 250-page black-and-white paperback sold on Amazon.com:
At $9.98 (50% royalty)
• List Price: $9.98
• Printing Cost (approx.): $4.45
• Royalty: 50% of list price = $4.99
• Net Earnings: $4.99 – $4.45 = $0.54 per copy
At $9.99 (60% royalty)
• List Price: $9.99
• Printing Cost (approx.): $4.45
• Royalty: 60% of list price = $5.99
• Net Earnings: $5.99 – $4.45 = $1.54 per copy
That single penny difference doubles the author’s earnings. Multiply that across dozens or hundreds of sales, and it becomes a dramatic shift in income.
A Final Thought
The publishing world is always evolving, and this change is a reminder that indie authors especially need to keep one eye on the business side of their work. By being strategic with your pricing and updating when necessary, you can save yourself from having emptier pockets.
Besides, we all need that extra change. How else will we afford the shiny sprayed-edge special editions of our favorite books?